Dow jumps over 150 pts premarket on hopes of rate cut, European stocks climb after Fed decision

By Jeff Davies

Shares on Wall Street were sharply higher in premarket trading after the Federal Reserve hinted at a possible interest rate cut later this year.

Although the central bank kept interest rates unchanged, Fed Chairman Jerome Powell signaled a more dovish approach in the future.

“Many participants now see the case for somewhat more accommodative policy has strengthened,” he said at a press conference following the policy statement, pushing markets higher and the yield on the US ten-year Treasury note to its lowest since 2016.

The Dow Jones Industrial Average jumped 151 points at 3:17 am GMT. Meanwhile, the S&P 500 gained 0.66% as the Nasdaq 100 climbed 1.05%. The euro advanced 0.64% against the dollar at 3:18 am GMT, buying 1.1296.

European stock markets have also opened with gains after the Federal Reserve’s decision.

Investors are now braced for the Bank of England interest rate decision expected later in the day.

The FTSE 100 was 0.45% in the green at 8:14 am GMT with BHP Group advancing 1.48% at 8:15 am GMT.

The DAX increased by 0.89% at 8:15 am GMT, led by Covestro AG gains of 2.20% at 8:16 am GMT.

The CAC 40 was up 0.68% at 8:15 am GMT. Arcelormittal was the best performer, adding 2.21% at 8:15 am GMT.

The euro added 0.47% compared to the dollar, changing hands for 1.1278 at 8:16 am GMT.

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